Garrosh's defeat proved the Alliance to be the most powerful force on Azeroth. The Scourge and Twilight's Hammer have both been destroyed, the Legion is in chaos, and the Horde can only limp along with Alliance assistance. So everything should be going well.
But the Alliance's grand position belies a number of serious internal problems. Without any major threats, the Alliance no longer has as much of a reason to stay together. Azeroth benefits from the Alliance's hegemonic peace, but monitoring the entire globe (and Outland) is an expensive proposition. The Alliance has already spent a great deal in recent conflicts, and even the dwarven coffers have their limits.
Most of the Legion's incursions hit Alliance territory, since they were a more obvious target. Defending armies typically responded quickly, but there were enough destroyed villages and lost lives to shake faith in Alliance leadership.
Khaz Modan
Still the heart of the Alliance, Khaz Modan is in some ways the most heavily afflicted by the Alliance's larger problems. Khaz Modan spent a fortune funding Stormwind's armies, and accept that Stormwind paid them back in human blood. Some dwarves have suggested adulterating the currency to create mild inflation, but there is great cultural resistance to this concept.
Aid to the Horde has been a polarizing decision. Khaz Modan is the biggest contributor, but it's deeply unpopular within the kingdom. How much more, they ask, must the dwarves give? Supporters argue that a peaceful Horde is worth the cost, but others see it as money wasted on an enemy.
Khaz Modan finished repairing the Stonewrought Dam a year before Legionfall. This has mostly been a success. Loch Modan is returning to its former prosperity, and lost agricultural land in the Wetlands is being reclaimed. The decrease in food prices comes as a great relief. The new dam also has turbines which provide reliable electricity to Dun Morogh, Loch Modan, and the Wetlands. The Bronzebeard lands have never been so bright.
The Bronzebeards and Wildhammers have maintained good relations for a long time, but there's still some tension. The majority of the Wildhammer Clan actually lives in the Twilight Highlands, acknowledging the clan thane and paying occasional tribute instead of taxes (the thane's support base is in Aerie Peak). Now the freeholders and farmers grumble about the taxes levied by Ironforge's collectors. A tax revolt in Kirthaven, occurring shortly after the Legion's defeat, took Khaz Modan by surprise. Thankfully, it was resolved without any bloodshed worse than a few broken noses (and both sides acknowledged that it was one helluva brawl). The underlying issue, however, has not been resolved and may grow worse.
The Dark Iron Empire has been considerably more challenging. With the Dark Irons, Khaz Modan has inherited a ruined landscape inhabited by a dispirited and demoralized people. It will be generations before the Dark Irons are brought up to speed. Many dwarves (particularly the Wildhammers) resent having to pay money to uplift a force that was so recently hostile to them.
Ironforge itself does what it can to keep the Dwarven Peace across Azeroth. They committed many troops to the Broken Shore, and suffered the bulk of the losses. Khaz Modan practices universal conscription, so the deaths were felt across all levels of society. This actually helped create a sense of solidarity within the Bronzebeard lands (universal conscription has not yet been extended to the Dark Irons and Wildhammers).
More controversial was the realization that the Titan Pantheon had been destroyed by the Burning Legion. This sent shock waves of grief throughout much of the Bronzebeard lands. Many dwarves lamented that they would never truly meet their makers. Conservative priests used the Pantheon's destruction as a warning not to drift from the Light. But others believed that the fall of the Titans meant the dwarves were intended to continue the Titans work. Indeed, that the dwarves (along with gnomes and humans) should form the nucleus of a new Pantheon to set order to the universe. Said order would not have much room for orcs or other races.
The Dark Iron Protectorate
Used to slavishly following the whims of their emperor and Ragnaros, the Dark Irons are a people without a clear purpose. All of the old social bonds existed within the state. Now that the state is gone, many Dark Irons scam and cheat each other to a degree that even goblins might find disturbing. Radicalism ferments in the magma-litten tunnels of Shadowforge City. Impoverished and demoralized Dark Irons seek a new meaning to life. Shadowforge was one of the few places where Kil'jaeden's attempt to create new cults actually gained real traction (resulting in a violent riot).
The Bronzebeards attempted to bring justice to the worst perpetrators of Dark Iron tyranny, but this proved unsuccessful. The old empire's brutality was so all-pervasive that a significant amount of the population was culpable in some way. Many of the worst perpetrators were associated with Moira Thaurissan, who continues to protect some of them. Now, the Bronzebeards are trying to reconcile the Dark Irons with one another, but it's been a long and slow process.
The Thorium Brotherhood made a bid for power after the empire's fall but were violently put down by the Bronzebeards. Their terrorists still lurk in the burning hills, inflicting brutal vigilante justice on officials of the old empire.
Wildhammer shamans and Kaldorei druids have been brought in to restore life to the Searing Gorge, and they've enjoyed some success. There region will always be harsh and volcanic, but it can be improved.
The Frostborn
Northrend holds many perils, but it is safer than it was when the Lich King ruled. Dauntless Frostborn adventurers explore the frozen wastes to reestablish the old trade routes. Times past saw the Frostborn as skilled smiths and craftsmen who lent their powerful tools to kings and chiefs across the continent. Now, they must sharpen their skills and understand the new technologies of the outside world.
Gnomeregan
Things are finally looking up for the gnomes. Gnomeregan has been completely reclaimed. Though the gnomes were rattled by news of the Pantheon's destruction, they adapted to this better than the dwarves. The main controversy is with High Tinker Mekkatorque's continued tenure. Though all gnomes are grateful for his leadership, he has occupied the position far longer than any previous high tinker. Many now think that he's using various emergencies (the Fourth War, the Legion's invasion) as an excuse. The gnomes argue about this a lot. They argue a lot in general.
Gnomeregan has been one of the more enthusiastic donors of Horde aid money. Gnomish scholars have long been in communication with their counterparts in the Horde, leading to a more cosmopolitan attitude. It also helps that the current incarnation of the Horde has never actually attacked gnomish territory (what little of it there is).
Stormwind
Stormwind is still the bulwark of humanity yet has failed to solve many of its problems. The population is exhausted by constant war, both within and without the kingdom. The government is nearly bankrupt, and continues to pour money into the hardscrabble colonization of the Borean Tundra. The Borean Tundra has at least been somewhat effective as a pressure valve for veterans, who flock to the icy frontier.
Stormwind has always been a divided kingdom. The poor have only gotten poorer during the long years of war and chaos. Many of them look to the seemingly utopian society of the Draenei, and wonder why Stormwind, which follows the Holy Light, cannot be the same. Countless "Humble Fellowships" have sprung up through the kingdom. These are small societies seeking to emulate Draenic communalism and act as an example for the rest of humanity.
It's an awkward situation. Many of the Humble Fellowships are genuine, and do good work to help the impoverished and uncertain. Others are led by criminals and scoundrels. The commitment displayed by the Fellowships makes the Stormwind Church look hypocritical. Likewise, the Fellowships sometimes come devolve into cults. But it's one thing to crack down on a cult that worships demons or strange gods—quite another that seems to do a better job of following the Holy Light than the church itself. The Draenei themselves do not actively sponsor or support the Humble Fellowships, though they do remind Stormwind that a society that claims to follow the Light must share its joy with all people, not just the noble and wealthy.
Of course, the lifestyles practiced by the Humble Fellowships only work in small communities of volunteers. You'd almost have to be a tyrant to apply them to an entire human kingdom.
Other poor Stormwinders prefer a more aggressive route. They hear of how the worgen curse leveled Gilnean social boundaries and wonder why the same cannot be done to Stormwind. Stormwind has increasingly adopted measures to track and monitor worgen, which has frustrated some Gilneans (most Gilneans do not want to spread the curse, though an avid minority seeks to bring more humans into the pack). Genn's indebtedness to Stormwind has kept him quiet about this matter for the time being.
Westfall is slowly returning to prosperity though the Shattering has permanently ruined portions of this once fertile land. Improved farming techniques and greater agriculture in the Elwynn River Valley have prevented starvation, but Westfall's future may lie in coastal trade rather than tilling the land. Most of Duskwood languishes under a mysterious curse. Darkshire and its environs, at least, have returned to some level of normalcy.
Happily, the Redridge Mountains are doing quite well. So too is the Swamp of Sorrows. The kings of Stormwind have long enjoyed the support of the Ralmanni ethnic minority (the original human inhabitants of Duskwood and the Swamp of Sorrows). As a reward, Varian created a semi-autonomous state called Ralmanaj that covers most of the swamp lands. Ralmanaj must follow Stormwind's foreign policy, and pay some taxes, but can otherwise run its own affairs.
Stormwind does not contribute to the Horde and neither do any of the other Allied human governments.
Stromgarde
Stromgarde's future is still uncertain. Though they have reclaimed much of the Arathi Highlands, their remaining population is scattered throughout the world. Danath Trollbane is an effective leader faced with the daunting prospect of rebuilding a kingdom from scratch. The Forsaken are just beyond the wall, and the Stromgarders know that they are too weak to mount an effective defense against any serious invasion.
Kirovar
The Kirovi of Northrend have fared better than Stromgarde. Their population is emerging from the forests and tundra, and the city of Paskaron (in Dragonblight) has been reclaimed. Survivors of Arthas's expedition, who settled in Valgard, have thrown in their lots with the Kirovi, helping in the reconstruction.
Theramore
Theramore is defunct as a nation-state. Most survivors moved to Stormwind, embittered at having one home after another taken from them. The farmers who settled in rural Dustwallow have mostly chosen to stay, but they face a marginal existence. They are too far and too poor for the Alliance to really help, and cannot do much against Horde squatters.
Stormheim
The lofty realm of Stormheim remains a sanctuary for the Valarjar. Now that the Lich King is dead and Hel defeated, those vrykul who once served them have been repatriated with the Valarjar, who remained faithful to Odyn.
After Legionfall, the Valarjar leaders offered to join the Alliance and were avidly accepted. This act both confirmed the Titan heritage of many Alliance races, and served as a mea culpa for the acts of the ancient vrykul, who once tried to exterminate humanity.
As a race, the vrykul possess no future. They still only give birth to humans, not to more of their own kind. Yet their culture may survive, as vrykul parents now teach their comparatively diminutive offspring the ways of their ancestors.
Gilneas
The worgen curse has irrevocably changed the Gilnean people. There was time in living memory that a Gilnean noble could assert his authority over commoners without question. Today, one's standing in the pack often matters more than one's heritage. Which isn't to say that pack life always favors commoners. A worgen who is fierce and decisive will do well, regardless of birth. A worgen who is timid will fare poorly, also regardless of birth. It's not so much that the caste system is gone—it just changed.
Some Gilneans shun worgen form, using it only during emergencies. They follow the creed of Gilneas True, and tend to be more conservative. They cling to the old social stratification, but deep down they know it to be a lie. They've all been in worgen form, and have felt the power of the beast within. Some are terrified by it. They see nothing in it of goodness or the Light. Some hate worgen form because they make for poor worgen.
Others embrace the Wolf Rampant. These are Gilneans who are almost always in worgen form. They relish the freedom from old social boundaries. Younger Gilneans tend to prefer the Wolf Rampant.
Genn has ably navigated the new political scene and has rallied both Gilneas True and the Wolf Rampant to his name. Gilneas itself has been returned to its rightful owners, but only Gilneas True seems particularly interested in rebuilding. The Wolf Rampant is happy to roam Kalimdor, rejecting human mores for the more feral Kaldorei conventions. Only a fraction of Gilneas City has been re-occupied, with its inhabitants trying to imitate their old society as best they can, but no longer truly believing in it.
Alone among the Alliance, Gilneas advocates aggressive war against the Horde. They have not forgiven the orcs or the Forsaken. Genn argues that the Fourth War proves he was right to have wanted to exterminate the orcs after the second. Gilnean partisans lurk at the borders of Horde lands, killing travelers and raiding isolated villages. It may only be a matter of time before they kill someone important.
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